Cairn India is planning to take up exploratory and appraisal drilling of ten wells in Palar block at the coast in Nellore district Andhra Pradesh with an investment outlay of Rs.10000 million. PR-OSN-2004/1 block is part of the Palar basin. It is located in the Bay of Bengal in the continental shelf area along the coast of Andhra Pradesh and Tamil Nadu. To begin with the company plans to drill three wells at Palar, starting early next year. As of September 2016, environment clearance for the project is underway.